Smooth sailing: The weak pound has supported export growth, boosting industry revenue

The Recreational Boat and Yacht Building industry has performed well over the past five years. Revenue declined at the start of the period due to constrained spending by high income households and a fall in export demand. Export revenue is significant in the industry and increasing demand from North America and Europe has supported sales over the past five years. Foreign customers have brought forward orders to take advantage of the low value of the pound, which has supported industry growth. Industry revenue is expected to increase at a compound annual rate of 2.7% over the five years through 2018-19 to reach £999.2 million. This includes a projected increase of 3.8% in the current year, primarily due to a resurgence in export more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Foreign customers have brought their purchases forward due to the weak pound
  • Weak demand at the start of the period caused industry enterprise numbers to contract
  • The weak pound is expected to continue to boost exports and support revenue growth
  • Industry Report - Industry Products Chapter

    Motor boatsMotor boats are the main products manufactured by the industry, accounting for an estimated 49% of industry revenue in the current year. Motor boats range from small, open-console motor boats with outboard engines to luxury super yachts that require a crew of up to a hundred people. The industry produces a significant number of pleasure boats, but the high value of larger yachts contributes more to revenue. Demand fell for manufacturers producing smaller boats over the past five years, partly due to an increase in the average weekly hours of work. Demand for more expensive yachts remained strong over the past five-year period, which was advantageous to larger operators. Mor...purchase to read more.

    Additional Insights for the Recreational Boat & Yacht Building Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Recreational Boat & Yacht Building Industry are

  • Access to highly skilled workforce
  • Undertaking technical research and development
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Expenditure by household income- highest quintile and Average real wage in the Recreational Boat & Yacht Building industry impact industry performance..

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    What's in this report

    What is the Recreational Boat & Yacht Building Industry?

    Firms in the Recreational Boat and Yacht Building industry manufacture recreational boats and yachts for domestic and export markets. Industry products range from luxurious super yachts to inflatable boats and canoes.

    Industry Products
  • Motor boats
  • Sailing boats
  • Other vessels
  • Industry Activities
  • Motor boat
  • Sailing boat
  • Custom boat
  • Other boat
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Expenditure by household income- highest quintile
  • Average real wage
  • Real effective exchange rate
  • Average weekly hours of work

  • Current Performance
  • Making waves
  • Choppy waters
  • Profit performance
  • Global demand
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand conditions
  • Pressure on profit
  • Table: Recreational Boat & Yacht Building Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Recreational Boat & Yacht Building Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Sea & Coastal Passenger Water Transport

  • Key Selling Industries
  • Aluminium Production
  • Iron & Steel Manufacturing
  • Measuring, Testing & Navigational Equipment Manufacturing

  • Products & Services
  • Motor boats
  • Sailing boats
  • Other vessels
  • Chart: Recreational Boat & Yacht Building Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • International sales
  • Domestic citizens
  • Domestic commercial users
  • Community, school and sporting groups
  • Chart: Major Market Segmentation for the Recreational Boat & Yacht Building Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Recreational Boat & Yacht Building

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Recreational Boat & Yacht Building Industry

  • Industry Globalization
    Princess Yachts Ltd, Sunseeker International Ltd,
  • Table: Princess Yachts Ltd - financial performance
  • Table: Sunseeker International Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Recreational Boat & Yacht Building Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Recreational Boat & Yacht Building Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Balloon Payment
  • A payment made to complete the outstanding sum payable for a boat once it has been finished.
  • Hull
  • Watertight external body of a boat or yacht
  • Running Phase
  • Yachts at the delivery stage, where they go through sea acceptance testing.
  • Super Yacht
  • A luxury and generally very expensive private boat with a professional crew.
  • What Our Customers Say

    Why buy this report?

    The Recreational Boat & Yacht Building market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
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    This report on Recreational Boat & Yacht Building:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Recreational Boat & Yacht Building market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Recreational Boat & Yacht Building, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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